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Understanding The Fair Foreclosure Act

January 7, 2012



The Fair Foreclosure Act (“FFA”), requires a lender who plans to foreclose on a mortgage to serve a notice of intention on the borrower.  The statute requires that the notice of intention state the “name and address of the lender.”  The question has come up and is now in the New Jersey Supreme Courts awaiting a decision from the Court. All oral arguments were given.

The issue at hand is the information provided in the Notice of Intention concerning the Lender or Plaintiff.

The FFA was adopted to give homeowners “every opportunity to pay their home mortgages, and thus keep their homes,” and to benefit lenders by allowing residential debtors to cure their defaults.  The notice of intention, a pre-condition to filing a foreclosure suit, must contain the lender’s name and address because that information is “helpful to a debtor interested in curing default.”

The Notices being questioned have listed the Lender as the Plaintiff, but has given the servicers information as to the contact.

Argument is that the Servicer acts on behalf of the lender, therefore is acceptable vs the Statue calls for the Lenders/plaintiffs information.

The decision is due back when the courts resume in January, but may be held off until February according to some sources.

The affect is that there are Thousands of Foreclosures are being delayed until the decision is made. There is a possibility that Thousands of properties already foreclosed may need to be vacated and started over.

For the Lenders the decision needs to come sooner than later, but for the consumer the longer the better as they can remain in their homes for a longer period of time.

6 Comments leave one →
  1. Dennis Davis permalink
    January 7, 2012 5:39 pm

    The court should require the lender’s address. There have many cases of misrepresentation by servicers.

  2. January 8, 2012 10:31 pm

    I deal with 25 foreclosure defense matters minimum each month. Getting the name of the true beneficiary and initiating contact with them is one of the hardest tasks. Wish we had this law in California!


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